Strategic & Tactical
Compensation Issues
Chapter 4 Page 47 ----Principal Activities in development an organization
Relationship in Pay Satisfaction Job Satisfaction and
Organizational satisfaction
Major Employees Groups
Development of an organization
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Establishing Philosophy
Mission
Developing Policies
Formulating organizational Strategy
Objectives and Sub Objective goals
Defining Work & Activities
Grouping Tasks into Jobs
Vision – Organization Philosophy
“What do we want to become?”
Define the future and visualize a dream and
write it down.
Example: Helping People Around the World
Eat and Live Better (Kraft Foods)
Become the most trusted tour company in
South Asia
Mission Statement
“What is our Business?”
Define What you will sell, how you will sell,
who you will sell, who do you care for
employees, investors
Example : To be the most successful
computer company in the world at
delivering the best customer experience
in markets we serve….. “DELL”
Mission Statements
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PEPSI - "Beat Coke"
HONDA - "We will crush, squash,
and slaughter Yamaha"
NIKE - "Crush Reebok"
Developing Policies
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Develop policies to insure Proper
acceptable operation of an
organization for achieving end
results
Policies are broad guidelines for
action
Policies must Support Vision &
Mission
Strategy of an organization
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Top management to formulate
strategy Starting from Mission
Vision Statements to External &
Internal factors evaluation
Strategy provides foundation of
future growth and development
Objectives and Goals
What are the goals and objectives
Translate Vision & Mission into output
requirements
Objectives at all levels
Objective – Sub Objective
Work Unit activities
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Unit must develop their own
function statements
Each Unit must identify what job
they will do and how
Grouping Tasks into goals
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Assign jobs to individuals in the
work units
Be ware of the Knowledge and Skills
requirements of Each Job and Task
in the work unit and create Jobs
accordingly
Pay Satisfaction
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Function Employee’s Perception of
How much pay they should receive
and how much they actually receive
If both the Pay Perception and
actual pay are equal employee is
“Pay Satisfactory”
Job Satisfaction
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A person’s attitude concerning
aspects of the work environment
such as the level of pay,
relationships with coworkers and
supervisors, job fit, and working
conditions.
HR must design Jobs, The work
environment in a way that it
increases the Job Satisfaction
Organizational Satisfaction
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Both Job & Pay Satisfaction as well
as other factors like Job Security,
frustration, stress
SATISFACTION is a PROCESS